Revenue per Employee Calculator
Divide annual revenue by headcount to get revenue per employee — a quick read on workforce productivity.
How it works
Revenue per employee = annual revenue ÷ number of employees
Revenue per employee measures how much top-line revenue each worker generates, a simple gauge of how efficiently a business turns headcount into sales. It is most useful compared over time or against direct competitors, since a "good" figure varies enormously by industry — software and capital-heavy firms run high, while labor-intensive services run low. A rising figure suggests improving leverage; a falling one can signal overhiring.
Worked example
A company with $5,000,000 in annual revenue and 25 employees generates $5,000,000 ÷ 25 = $200,000 of revenue per employee, or roughly $16,667 per employee each month.
Frequently asked questions
What is a good revenue per employee?
It depends heavily on industry. Software firms often exceed $300,000–$1M+, while restaurants and retail may run well under $100,000. Compare against peers in your sector rather than a universal benchmark.
Should I use headcount or full-time equivalents?
Full-time equivalents (FTEs) give a cleaner picture when you have many part-timers or contractors, since two half-time staff count as one FTE. Be consistent so period-to-period comparisons hold.
How is this different from profit per employee?
Revenue per employee measures sales generated; profit per employee subtracts costs first. A high revenue-per-employee firm can still be unprofitable, so pair it with a margin or profit-per-employee measure.
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Educational estimate, not financial, tax or investment advice.